,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
N N N N N N N N N N N
n Marshall N
Chapter 02 N
NFinancial Statements and Accounting Concepts/Principles
N N N N
MultipleN ChoiceN Questions
1. WhichNof NtheNf ollowing Nis Nnot NaNtransactionNto NbeNrecorded NinNtheNaccounting Nrecords Nof NanNentity
?
A. Investment Nof NcashNby NtheNowners.
B. SaleNof Nproduct Nto Ncustomers.
C. Receipt Nof NaNplaqueNrecognizing NtheNfirm's Nencouragement Nof NemployeeNparticipationNinNt
heNUnited NWay Nf und Ndrive.
D. Receipt Nof Nservices Nf romNaN"quick-
print" Nshop NinNexchangeNf orNtheNpromiseNto NprovideNadvertising NdesignNservices Nof N
equivalent Nvalue.
2. TheNbalanceNsheet Nmight Nalso NbeNcalled:
A. Statement Nof NFinancialNPosition.
B. Statement Nof NAssets.
C. Statement Nof NChanges NinNFinancialNPosition.
D. NoneNof NtheNabove.
3. Transactions NareNsummarized Nin:
A. TheNnotes Nf orNtheNf inancialNstatements.
B. TheNindependent Nauditor's NopinionNletter.
C. TheNentity's Naccounts.
D. NoneNof NtheNabove.
2-1
CopyrightN©N2017 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
N N N N N N N N N N N
n Marshall N
4. ANf iscalNyear:
A. is Nalways NtheNsameNas NtheNcalendarNyear.
B. is Nf requently Nselected Nbased NonNtheNf irm's Noperating Ncycle.
C. must Nalways Nend NonNtheNsameNdateNeachNyear.
D. must Nend NonNtheNlast Nday Nof NaNmonth.
5. WhichNof NtheNf ollowing Nis Nnot NaNprincipalNf ormNof Nbusiness Norganization?
A. Partnership.
B. SoleNproprietorship.
C. Limited Nunregistered Nbusiness.
D. Corporation.
E. NoneNof NtheNabove.
6. TheNtimeNf rameNassociated NwithNaNbalanceNsheet Nis:
A. aNpoint NinNtimeNinNtheNpast.
B. aNone-yearNpast Nperiod Nof Ntime.
C. aNsingleNdateNinNtheNf uture.
D. aNf unctionNof NtheNinf ormationNincluded NinNit.
7. Current NU.S. NGenerally NAccepted NAccounting NPrinciples Nand Nauditing Nstandards NrequireNt
heNf inancialNstatements Nof NanNentity Nf orNtheNreporting Nperiod Nto Ninclude:
A. Earnings Nand Ngross Nreceipts Nof NcashNf orNtheNperiod.
B. Projected Nearnings Nf orNtheNsubsequent Nperiod.
C. FinancialNpositionNatNtheNend Nof NtheNperiod.
D. Current Nf airNvalues Nof NallNassets Nat NtheNend Nof NtheNperiod.
2-2
CopyrightN©N2017 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
N N N N N N N N N N N
n Marshall N
8. TheNbalanceNsheet NequationNcanNbeNrepresented Nby:
A. Assets N= NLiabilities N+ NStockholders' NEquity
B. Assets N-NLiabilities N= NStockholders' NEquity
C. Net NAssets N= NStockholders' NEquity
D. AllNof NtheNabove.
9. Stockholders' Nequity Nref ers Nto NwhichNof NtheNf ollowing?
A. ANlisting Nof NtheNorganization's Nassets Nand Nliabilities.
B. TheNownership Nright Nof NtheNstockholder(s)Nof NtheNentity.
C. ProbableNf utureNsacrif ices Nof Neconomic Nbenef its.
D. AllNof NtheNabove.
E. NoneNof NtheNabove.
10. Accumulated NdepreciationNonNaNbalanceNsheet:
A. is Npart Nof Nstockholders' Nequity.
B. represents NtheNportionNof NtheNcost NofNanNasset Nthat Nis Nassumed NtoNhaveNbeenN"used Nup" NinN
theNprocess Nof Noperating NtheNbusiness.
C. represents NcashNthat NwillNbeNused Nto NreplaceNwornNout Nequipment.
D. recognizes NtheNeconomic Nloss NinNvalueNof NanNasset NbecauseNof Nits NageNorNuse.
11. TheNdistinctionNbetweenNaNcurrent Nasset Nand NotherNassets:
A. is Nbased NonNhowNlong NtheNasset Nhas NbeenNowned.
B. is Nbased NonNamounts Nthat NwillNbeNpaid Nto NotherNentities NwithinNaNyear.
C. is Nbased NonNtheNability Nto NdetermineNtheNcurrent Nf airNvalueNof NtheNasset.
D. is Nbased NonNwhenNtheNasset Nis Nexpected NtoNbeNconverted Nto Ncash, NorNused NtoNbenef it NtheNentity
.
2-3
CopyrightN©N2017 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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N N N N N N N N N N N
n Marshall N
Chapter 02 N
NFinancial Statements and Accounting Concepts/Principles
N N N N
MultipleN ChoiceN Questions
1. WhichNof NtheNf ollowing Nis Nnot NaNtransactionNto NbeNrecorded NinNtheNaccounting Nrecords Nof NanNentity
?
A. Investment Nof NcashNby NtheNowners.
B. SaleNof Nproduct Nto Ncustomers.
C. Receipt Nof NaNplaqueNrecognizing NtheNfirm's Nencouragement Nof NemployeeNparticipationNinNt
heNUnited NWay Nf und Ndrive.
D. Receipt Nof Nservices Nf romNaN"quick-
print" Nshop NinNexchangeNf orNtheNpromiseNto NprovideNadvertising NdesignNservices Nof N
equivalent Nvalue.
2. TheNbalanceNsheet Nmight Nalso NbeNcalled:
A. Statement Nof NFinancialNPosition.
B. Statement Nof NAssets.
C. Statement Nof NChanges NinNFinancialNPosition.
D. NoneNof NtheNabove.
3. Transactions NareNsummarized Nin:
A. TheNnotes Nf orNtheNf inancialNstatements.
B. TheNindependent Nauditor's NopinionNletter.
C. TheNentity's Naccounts.
D. NoneNof NtheNabove.
2-1
CopyrightN©N2017 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
mynursytest.store
,DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
N N N N N N N N N N N
n Marshall N
4. ANf iscalNyear:
A. is Nalways NtheNsameNas NtheNcalendarNyear.
B. is Nf requently Nselected Nbased NonNtheNf irm's Noperating Ncycle.
C. must Nalways Nend NonNtheNsameNdateNeachNyear.
D. must Nend NonNtheNlast Nday Nof NaNmonth.
5. WhichNof NtheNf ollowing Nis Nnot NaNprincipalNf ormNof Nbusiness Norganization?
A. Partnership.
B. SoleNproprietorship.
C. Limited Nunregistered Nbusiness.
D. Corporation.
E. NoneNof NtheNabove.
6. TheNtimeNf rameNassociated NwithNaNbalanceNsheet Nis:
A. aNpoint NinNtimeNinNtheNpast.
B. aNone-yearNpast Nperiod Nof Ntime.
C. aNsingleNdateNinNtheNf uture.
D. aNf unctionNof NtheNinf ormationNincluded NinNit.
7. Current NU.S. NGenerally NAccepted NAccounting NPrinciples Nand Nauditing Nstandards NrequireNt
heNf inancialNstatements Nof NanNentity Nf orNtheNreporting Nperiod Nto Ninclude:
A. Earnings Nand Ngross Nreceipts Nof NcashNf orNtheNperiod.
B. Projected Nearnings Nf orNtheNsubsequent Nperiod.
C. FinancialNpositionNatNtheNend Nof NtheNperiod.
D. Current Nf airNvalues Nof NallNassets Nat NtheNend Nof NtheNperiod.
2-2
CopyrightN©N2017 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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, DOWNLOAD THE Test Bank for Accounting What the Numbers Mean 11th Editio
N N N N N N N N N N N
n Marshall N
8. TheNbalanceNsheet NequationNcanNbeNrepresented Nby:
A. Assets N= NLiabilities N+ NStockholders' NEquity
B. Assets N-NLiabilities N= NStockholders' NEquity
C. Net NAssets N= NStockholders' NEquity
D. AllNof NtheNabove.
9. Stockholders' Nequity Nref ers Nto NwhichNof NtheNf ollowing?
A. ANlisting Nof NtheNorganization's Nassets Nand Nliabilities.
B. TheNownership Nright Nof NtheNstockholder(s)Nof NtheNentity.
C. ProbableNf utureNsacrif ices Nof Neconomic Nbenef its.
D. AllNof NtheNabove.
E. NoneNof NtheNabove.
10. Accumulated NdepreciationNonNaNbalanceNsheet:
A. is Npart Nof Nstockholders' Nequity.
B. represents NtheNportionNof NtheNcost NofNanNasset Nthat Nis Nassumed NtoNhaveNbeenN"used Nup" NinN
theNprocess Nof Noperating NtheNbusiness.
C. represents NcashNthat NwillNbeNused Nto NreplaceNwornNout Nequipment.
D. recognizes NtheNeconomic Nloss NinNvalueNof NanNasset NbecauseNof Nits NageNorNuse.
11. TheNdistinctionNbetweenNaNcurrent Nasset Nand NotherNassets:
A. is Nbased NonNhowNlong NtheNasset Nhas NbeenNowned.
B. is Nbased NonNamounts Nthat NwillNbeNpaid Nto NotherNentities NwithinNaNyear.
C. is Nbased NonNtheNability Nto NdetermineNtheNcurrent Nf airNvalueNof NtheNasset.
D. is Nbased NonNwhenNtheNasset Nis Nexpected NtoNbeNconverted Nto Ncash, NorNused NtoNbenef it NtheNentity
.
2-3
CopyrightN©N2017 NMcGraw-
HillNEducation. NAllNrights Nreserved. NNo Nreproduction Nor Ndistribution NwithoutNtheNprior Nwritten NconsentNof N McGraw-
HillNEducation.
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